Sales tax funds used conservatively
(Editor’s Note: Following is the final installment in a series about economic development efforts in Albion. The series provides information to local voters, who will decide at May 13 primary election whether to continue the city’s economic development plan and the one-quarter-cent sales tax for economic development.)
During the past 10 years, Albion’s local economy has benefitted from an economic development plan and the use of sales tax dollars for economic development projects.
At the same time, the Albion Economic Development Corporation (AEDC) has been conserving resources for the future.
“The board has always been well aware that the LB 840 sales tax was only a 10-year program,” said Bob Racek, an AEDC board member. “Since a window of only 10 years was assured, we wanted to conserve these funds.”
Voters passed the one percent city sales tax in March, 1998, and the city received the first sales tax revenues the following July. Under the measures passed by Albion voters, the city retained three-quarters of one cent for water and sewer systems and streets. The remaining one-quarter cent was reserved for economic development.
At that time, it was estimated that the sales tax would bring in $180,000 to $200,000 per year. The revenue stream for the city has actually averaged more than $225,000 per year since its inception.
Read more in the Albion News Print Edition.